Tech stocks always lead the growth of many investments including the NASDAQ 100 index which outperformed even the S&P 500 many times. On this page, we are sharing the top 30 companies listed on the Hang Seng Tech Index, a new index launched in 2020.
Many investors find great potential with Chinese stocks. It’s undeniable that China is one of the most powerful economies in the world. China’s technology will never be left behind. From state-of-the-art robotics to cutting-edge artificial intelligence, their technology continues to blossom.
Their internet users alone are gigantic. South China Morning Post reported that China has 900 million internet users in 2020, larger than the populations of the United States, Russia, Mexico, Germany, the United Kingdom, France, and Canada combined.
What is Hang Seng Tech Index?
Hang Seng Tech Index tracks the 30 largest tech companies listed on the Hong Kong stock exchange. This stock market index comprises of companies spanning in different technology industries including internet, fintech, cloud, eCommerce, and digital activities.
Top 30 Companies on the Hang Seng Tech Index in 2020
Hang Seng Tech index components go through a portfolio re-balancing. Over time, the list may add or remove new candidates. The companies are screened through strict criteria including whether they operate through a tech-enabled platform (through internet or mobile), their research and development expenses to revenue ratio, revenue growth, and market cap.
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Who should Invest in Hang Seng Tech Index?
1. Tech Stocks Investors
If you want to diversify your tech portfolio with Chinese tech stocks like Alibaba, Tencent, Xiaomi, JD, Meituan, and the like, why not? These companies are enormous and are favorites by many traders, too—no wonder why they are listed on numerous stock exchanges worldwide.
According to the Hang Seng Index press release, “from back-testing data, Hang Seng Tech Index would have achieved significant returns of 36.2% for the full year of 2019 and 35.3% for the first half of 2020.”
2. Traders with business exposure in China
If you want to have business exposure in China, and you believe its economy and tech businesses will continue to innovate, then you can trade with these stocks. You should also consider being always updated with what’s going on about the market and economy of China and Hong Kong.
3. Active Traders
Because these large market cap tech stocks create more price fluctuations, active traders can find a lot of opportunities riding the momentum, swing in and out, and scalping trade positions.
4. Long Term investors
Of course, there will always be investment prospects for long term investors of Hang Seng tech stocks. Besides investing in Hang Seng tech index, you can also select your top equities. If you want to go long, with buy and hold strategy, you can grow some profit choosing the best stocks suited for your analysis.
We hope that some ETFs that track the performance of the Hang Seng tech index will be introduced soon.
How to Trade Chinese Tech Stocks?
You can trade these stocks on the Hong Kong stock exchange and other stock exchanges. We are trading some of these instruments using an online platform called eToro. Many international companies are also available on this platform.
Top 7 Stocks on the Hang Seng Tech Index:
Tencent is a gaming and social media giant with a market cap of 5.4 trillion HKD. Its businesses include online games, social networks, fintech, cloud, utilities, media and digital content. They created the popular platforms WeChat and QQ.
Tencent serves over 1 billion users around the world. Their ventures include some of the biggest games in the world: League of Legends, Fortnite, Call of Duty, Honour of Kings / Arena of Valor, and Peacekeeper Elite.
Meituan is China’s leading eCommerce platform for services operating popular mobile apps such as Meituan, Dianping, Meituan Waimai, Mobike, and others. This well-known food-delivery icon also serves car-hailing, bike-sharing, hotel and travel booking, movie ticketing, and many more.
With over 1.6 trillion HKD market cap, it’s exciting to see how fast this company is growing its business segments.
3. Sunny Optical
Sunny Optical is a prominent optical tech manufacturer in China. The company designs, manufactures, and sells lenses and optical devices worldwide. Sunny Optical has operated for more than 30 years and has Research and Development centers in North America, Japan, Singapore, South Korea, and Taiwan.
Sunny Optical has over 159 billion HKD market cap and reported a net profit of 60% YoY.
Alibaba is the largest eCommerce company in China and one of the biggest online retail companies in the world. BABA has around 5 trillion HKD market capitalization as of this writing. This stock is both traded on Wall Street and Hong Kong stock exchange.
According to Alibaba, they set 5-year goals to serve over 1 billion annual active consumers and achieve over RMB10 trillion in annual consumption.
5. Ali Health
Ali Health is Alibaba Health Information Technology Limited, an investment holding company that provides pharmaceutical eCommerce and intelligent medicine and product tracking platform in China.
SMIC also means Semiconductor Manufacturing International Corporation. It designs, manufactures, and distributes integrated circuits (IC) and other semiconductor services. The company operates in North America, China, Hong Kong, and Eurasia.
Xiaomi is the fourth-largest smartphone brand in the world. The company also creates numerous electronics and devices like laptops, bags, earphones, TV, shoes, fitness brands, camera, and many more. Xiaomi ranks 24th among the Most Innovative Companies in 2020 (listed by Boston Consulting Group). It has approximately 239 billion HKD market cap.
World’s Top Indexes:
- NASDAQ 100 Index Components
- Top 50 Companies on the S&P 500 Index
- DAX Top 30 Companies – GER30 Index
- Dow Jones Top 30 Companies
Disclaimer: This content is for information purposes only and should never be considered as professional advice. Every investor has a different risk tolerance and goals. Always do your own research. All investments have risks. Risk only the money you’re not afraid to lose.